United Bank for
Africa (UBA) Plc, the pan-African financial services group, operating in 19
African countries, has released its audited 2016 full year results, showing
significant growth in gross earnings and profits, an attestation to its
resilience, enhanced productivity and geographic diversification, evident in
the impressive contribution from its African subsidiaries.
The Group recorded
an impressive 22 percent growth in gross earnings to N384 billion, as at
December 2016, from N315 billion at the end of the 2015 financial year, illustrating
the Bank’s ability to grow profitability despite the difficult macro-economic
environment. In addition to the rising adoption of electronic banking channels
in many of the African markets, where UBA operates, the Bank leveraged its
strong franchise and geographical footprint.
As reflected in the
results released on March 24, 2017 at the Nigerian Stock Exchange (NSE),
covering the period January to December 2016, the Group saw a significant 32
percent growth in profit before tax to N91 billion, compared to N68 billion
profit recorded over the same period of 2015. UBA’s profit after tax grew
by 22 percent to N72 billion, from N60 billion recorded the previous year. The
performance was buoyed by considerable growth in both interest and non-interest
income, as well as increasing efficiency gains from cost management
initiatives. UBA’s subsidiaries outside of Nigeria are increasingly gaining
market share, reinforcing the strong and impressive subsidiary contribution to
the Group, estimated at one-third of profit in 2016, from a quarter in 2015
financial year.
Following the
impressive performance, the Board of Directors proposed a final dividend of
55kobo, subject to the approval of the shareholders at the forthcoming Annual
General Meeting, scheduled to be held on 07 April, 2017 at the Eko Hotel and
Suites in Lagos. The Bank had earlier paid an interim dividend of 20k to
shareholders, bringing the total dividend for the 2016 financial year to N0.75,
an unprecedented yield of 13.9%, based on the stock’s unit price of N5.39 on
the floor of the NSE. The results and dividend proposal justify investor
confidence in the Bank, as reflected in the 20% year-to-date rally in the share
price, compared to the overall market loss of 5% over the same period.
Commenting on the
results, Kennedy Uzoka, the Group Managing Director and Chief Executive Officer
expressed satisfaction at the resilience of the Bank, despite the macroeconomic
challenges in a number of countries where UBA operates. "Given the operating
environment in 2016, I am very pleased with our profitability - an impressive
32% growth in profit before tax to N91 billion - whilst we have also focused
keenly on operational efficiencies, illustrated by the reduction in our
Cost-to-Income Ratio." Uzoka said.
Speaking on its
outlook for the 2017 financial year, Uzoka expressed optimism, as the Bank’s
pan-African operations increasingly gain critical mass across its chosen
markets. "As we implement our Customer First Philosophy, we are approaching
2017 with real optimism, especially with the outlook remaining positive in many
of our markets, where we benefit from our increasingly diverse revenue streams.
We reiterate our pledge to delivering excellent service to our customers, and
remain committed to creating superior and sustainable return for our
shareholders."
Ugo Nwaghodoh, Chief
Financial Officer (CFO) of UBA Group stated the Bank extracted efficiency gains
across its operations to boost profitability. He confirmed that the Bank
has seen significant improvement across major performance metrics, including an
improvement in the net interest margin. “Our performance in 2016 reflects the
strong potential and resilience of our business. We grew top and bottom lines
by 22% and 32% respectively, despite the stagflation in Nigeria, our core
market. Reflecting improved balance sheet management and better value
extraction, our net interest margin (NIM) improved 40bps YoY to 6.7%.” the CFO
noted.
He also expressed
delight at the performance of the Group’s African subsidiaries (ex-Nigeria),
which contributed a third of the Group’s profits, adding that the Bank will
continue to leverage innovative offerings to grow its share of the respective
markets. "As we diligently execute our Customer First initiative, I am
particularly upbeat on the future of business and the value creation for
shareholders." he noted.
United Bank for
Africa Plc is a leading financial services group in sub-Saharan Africa, with
presence in 19 African countries, as well as the United Kingdom, the United
States of America and France. From a single country operation founded in 1949
in Nigeria, Africa's largest economy, UBA has emerged as a pan-African provider
of banking and other financial services, to about 11 million customers
globally, through one of the most diverse service channels in sub-Sahara Africa;
632 business offices, 1,750 ATMs, some 13,500 PoS, and a robust online and
mobile banking platform.
UBA was the first
Nigerian bank to make an Initial Public Offering (IPO), following its listing
on the NSE in1970. It was also the first Nigerian bank to issue Global
Depository Receipts (GDRs). The shares of UBA are publicly traded on the
Nigerian Stock Exchange (NSE) and the Bank has a well-diversified shareholder
base, including foreign and local institutional investors as well as individual
shareholders.
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